Companhia Siderúrgica Nacional (SID) AI Stock Analysis

Compare

469 Followers

Top Page

Companhia Siderúrgica Nacional

(NYSE:SID)

Rating:53Neutral

Price Target:

$1.50

▲(6.38%Upside)

The overall stock score is primarily influenced by Companhia Siderúrgica Nacional's financial performance and valuation. The financial challenges are significant, with high leverage and negative profitability, which are partially offset by positive cash flow. The technical analysis suggests bearish trends, and while the valuation indicates challenges due to negative earnings, the high dividend yield provides some appeal. Strategic improvements are needed to enhance financial health and investor confidence.

Companhia Siderúrgica Nacional (SID) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$1.85B

Dividend Yield16.27%

Average Volume (3M)3.08M

Price to Earnings (P/E)―

Beta (1Y)1.06

Revenue Growth-9.84%

EPS Growth-14783.33%

CountryUS

Employees24,924

SectorBasic Materials

Sector Strength67

IndustrySteel

Share Statistics

EPS (TTM)-0.10

Shares Outstanding1,326,094,000

10 Day Avg. Volume3,260,399

30 Day Avg. Volume3,081,529

Financial Highlights & Ratios

PEG Ratio0.69

Price to Book (P/B)0.82

Price to Sales (P/S)0.00

P/FCF Ratio4.70

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$1.50

Price Target Upside6.38% Upside

Rating ConsensusHold

Number of Analyst Covering0

Companhia Siderúrgica Nacional Business Overview & Revenue Model

Company DescriptionCompanhia Siderúrgica Nacional (SID) is one of the largest fully integrated steel producers in Brazil and Latin America. The company operates in various sectors, including steel production, mining, logistics, cement, and energy. Its core products and services include flat steel, long steel, galvanized steel, and mining products such as iron ore, which are used in several industries, including automotive, construction, and infrastructure.

How the Company Makes MoneyCompanhia Siderúrgica Nacional generates revenue through multiple streams. The primary source of income is the production and sale of steel products, including flat and long steel, which are supplied to industries like automotive and construction. The company also profits from its mining operations by extracting and selling iron ore, a crucial raw material for steel production. Additionally, SID has diversified into logistics, providing railway and port services that support its mining and steel activities. Its cement division contributes to earnings by utilizing slag, a byproduct of steel production, to manufacture cement. Lastly, the energy segment helps reduce operational costs and provides additional revenue through the generation and sale of electric power. Strategic partnerships and investments in infrastructure and technology also play a significant role in enhancing the company's profitability.

Companhia Siderúrgica Nacional Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q4-2024)

% Change Since: -18.02%|

Next Earnings Date:Jul 31, 2025

Earnings Call Sentiment Positive

The earnings call highlighted strong performances and record achievements in cash holdings, mining, steel, and cement segments, along with significant ESG advancements. However, the call also noted challenges such as the impact of exchange rates on debt, negative cash flow despite operational success, and the strategic decision to withhold dividend distribution. Additionally, there are concerns about market dynamics in the steel sector, particularly related to imports and protectionist measures.

Q4-2024 Updates

Positive Updates

Record Cash Holdings

CSN achieved the highest cash holdings in its history, almost reaching BRL 25 billion, enabling better control over the company's leveraging.

Strong Mining Segment Performance

The mining segment confirmed operational excellence, achieving production guidance despite adverse weather, and experienced a 35% price increase leading to an EBITDA margin above 50%.

Steel Segment Recovery

The steel segment saw a 10% increase in sales compared to the previous year, with EBITDA margins reaching 11% for the first time in the year, indicating a recovery trend.

Cement Segment Record Margins

CSN Cement achieved a record EBITDA margin of 33%, the highest since acquiring Lafarge Holcim, outperforming market averages.

ESG Achievements

CSN reported no fatalities, a 63% reduction in lost days, and a 7% reduction in CO2 emissions in the steel mill, bringing them closer to their 2030 goals.

Negative Updates

Exchange Rate Impact on Debt

The leverage increased due to exchange rate variations on dollar-denominated debt, impacting the financial results despite operational improvements.

Negative Cash Flow Despite Strong Operations

Despite strong operational results, CSN experienced a negative cash flow due to financial expenses affected by exchange rate effects and high investment volumes.

Decision to Not Distribute Dividends

CSN decided not to distribute dividends in the first quarter of 2025 to focus on deleveraging, as approved by the Board.

Anticipated Challenges in Steel Market

Concerns were raised about the impact of protectionist measures and unloyal competition from imports, particularly from China, affecting the steel market.

Company Guidance

In the call, CSN reported strong performance for the fourth quarter and full year 2024, highlighting significant metrics such as achieving the highest cash in its history at nearly BRL25 billion. The company emphasized its operational excellence in mining, evidenced by a 35% price increase and an EBITDA margin over 50%. In steel, CSN saw a 10% increase in sales compared to the same period last year, leading to an EBITDA margin of 11% in the fourth quarter. The cement segment reached a record EBITDA margin of 33%, the highest since acquiring Lafarge Holcim. CSN also detailed its commitment to deleveraging, with a semester-end leverage ratio impacted by exchange rate variations but operationally closer to 3.2 times. The company's strategy includes capital recycling and a focus on organic growth, postponing dividend distributions to prioritize deleveraging. CSN's guidance for 2025 includes continued operational improvements and strategic investments to foster growth and maintain financial health.

Companhia Siderúrgica Nacional Financial Statement Overview

Summary

Companhia Siderúrgica Nacional exhibits a mixed financial performance with profitability challenges and high leverage. While operational efficiencies are present, they are insufficient to counteract the negative net income and declining revenue growth. The balance sheet's significant debt level poses risks, although cash flow generation offers some resilience. Strategic improvements are necessary for sustaining financial health.

Income Statement

Neutral

The income statement shows a decline in revenue from the previous periods with a negative net income. The gross profit margin for the TTM period is 26.7%, while the net profit margin is -4.9%, indicating a challenging operational environment. EBIT and EBITDA margins are at 9.6% and 17.9% respectively, showing some operational efficiency, but not enough to offset the losses. Continued negative net income highlights profitability issues.

Balance Sheet

Neutral

The balance sheet reflects a high debt-to-equity ratio of 4.14, indicating significant leverage which may pose risks in volatile markets. Stockholders' equity as a percentage of total assets is 13.1%, suggesting moderate financial stability. The return on equity is not calculable due to negative net income, showing a need for improvement in generating shareholder returns.

Cash Flow

Neutral

Operating cash flow is positive at 8.1 billion, but free cash flow has seen a decline compared to the previous year, indicating pressure on liquidity. The operating cash flow to net income ratio is not meaningful due to negative net income. The company has managed to maintain some cash flow strength despite overall profitability challenges.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.69B	45.44B	44.36B	47.91B	30.06B
Gross Profit	15.31B	11.30B	13.31B	22.07B	10.94B
EBITDA	7.28B	8.58B	10.07B	23.08B	9.69B
Net Income	-2.59B	-318.21M	2.17B	12.26B	3.79B
Balance Sheet
Total Assets	103.91B	91.53B	85.35B	79.38B	63.00B
Cash, Cash Equivalents and Short-Term Investments	24.22B	17.55B	13.45B	19.30B	13.73B
Total Debt	57.75B	45.59B	41.61B	33.12B	35.80B
Total Liabilities	88.45B	71.84B	63.54B	56.00B	51.75B
Stockholders Equity	12.27B	17.50B	19.49B	20.31B	9.91B
Cash Flow
Free Cash Flow	3.16B	2.88B	-3.33B	13.57B	7.89B
Operating Cash Flow	8.65B	7.29B	2.04B	16.43B	9.58B
Investing Cash Flow	-1.12B	-4.59B	-11.45B	447.93M	-1.86B
Financing Cash Flow	-103.83M	1.32B	4.75B	-8.53B	1.19B

Companhia Siderúrgica Nacional Technical Analysis

Technical Analysis Sentiment

Negative

Last Price1.41

Price Trends

50DMA

1.52

Negative

100DMA

1.55

Negative

200DMA

1.65

Negative

Market Momentum

MACD

-0.01

Positive

RSI

42.12

Neutral

STOCH

18.21

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SID, the sentiment is Negative. The current price of 1.41 is below the 20-day moving average (MA) of 1.45, below the 50-day MA of 1.52, and below the 200-day MA of 1.65, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 42.12 is Neutral, neither overbought nor oversold. The STOCH value of 18.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SID.

Companhia Siderúrgica Nacional Risk Analysis

Companhia Siderúrgica Nacional disclosed 41 risk factors in its most recent earnings report. Companhia Siderúrgica Nacional reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 1 New Risks

Cement is a perishable product and failure to carefully store and distribute it may result in losses for our cement subsidiary and us. Q4, 2023

Companhia Siderúrgica Nacional Peers Comparison

Overall Rating

UnderperformOutperform

Sector (44)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMC	76 Outperform	$5.90B	169.77	0.88%	1.37%	-5.64%	-93.26%
GGB	73 Outperform	$5.63B	10.05	5.86%	2.97%	-9.33%	-51.03%
SIM	72 Outperform	$4.72B	7.06	19.79%	―	-15.93%	86.43%
TX	61 Neutral	$5.96B	73.52	-2.75%	11.86%	-10.20%	-152.18%
CLF	58 Neutral	$4.69B	―	-17.57%	―	-15.00%	-423.14%
SID	53 Neutral	$1.85B	―	-16.28%	16.27%	-9.84%	-14783.33%
Sector *	44 Neutral	C$961.63M	-6.69	-13.73%	2.61%	17.55%	-32.57%

* Basic Materials Sector Average

Performance Comparison

SID

Companhia Siderúrgica Nacional

1.41

-0.75

-34.72%

CLF

Cleveland-Cliffs

9.48

-5.73

-37.67%

CMC

Commercial Metals Company

52.68

-4.41

-7.72%

GGB

Gerdau SA

2.85

-0.45

-13.64%

SIM

Grupo Simec SA De CV

27.79

-3.46

-11.07%

Ternium SA

30.36

-2.65

-8.03%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 15, 2025